On October 28, 2025, the 18th session of the Standing Committee of the 14th National People’s Congress voted to adopt the newly revised Maritime Code (referred to as the new Maritime Code).
Xiao Hai Shi continues to provide a brief explanation around the new Maritime Code for your reference.
Today’s focus is on Chapter 2, Section 1: Ship Ownership (Articles 7-10) and Section 2: Ship Mortgage (Articles 11-20).
Section 1 Ship Ownership
Note: Compared to the 92 Maritime Code, one article (State-owned Ships) was deleted, and one article (Ownership of Ships under Construction) was added.
Article 7 Ship ownership refers to the right of the shipowner to possess, use, benefit from, and dispose of the ship according to law.
Note: This article concerns the concept of ship ownership. It has not been amended.
Article 8 The creation, alteration, transfer, and extinction of ship ownership shall be registered with the ship registration authority; without registration, it may not be asserted against a third party acting in good faith.
The ownership of a ship under financial lease held by the lessor under a ship financial lease contract, if not registered, may not be asserted against a third party acting in good faith. The lessee shall pay rent in accordance with the ship financial lease contract. If the lessee fails to pay the rent after being demanded and still fails to pay within a reasonable period, the lessor may demand payment of all the rent; may also terminate the ship financial lease contract and take back the ship under financial lease.
The transfer of ship ownership shall be executed through a written contract.
Note: This article concerns the registration of ship ownership.
(1) Paragraph 1 changes “acquisition, transfer, and extinction of ship ownership” from the 92 Maritime Code to “creation, alteration, transfer, and extinction”, and changes “third party” to “third party acting in good faith”, aligning with Article 225 of the Civil Code.
(2) Added one paragraph as Paragraph 2, clarifying matters related to the registration of property rights for ship financial leases and the protective function of the leased ship for the realization of the lessor’s creditor’s rights.
Article 9 Where a ship is jointly owned by two or more legal persons, unincorporated organizations, or natural persons, it shall be registered with the ship registration authority; without registration, it may not be asserted against a third party acting in good faith.
Ship right holders, interested parties, and relevant state organs may inquire about the registration status of ship ownership according to law.
Note: This article concerns co-ownership.
(1) Paragraph 1 changes “jointly owned by a legal person or individuals” from the 92 Maritime Code to “jointly owned by legal persons, unincorporated organizations, or natural persons”, aligning with the Civil Code.
(2) Added provisions on inquiring about the registration status of ship ownership as Paragraph 2 (added in the third review draft, not stipulated in the first and second review drafts).
Regulatory Link: “Regulations on Ship Registration Work”
Article 153 The ship right holder recorded in the ship register may query the ship register at the ship registration authority of the port of registry by themselves or through an authorized representative.
Interested parties meeting the following conditions may query the ship register at the ship registration authority of the port of registry by themselves or through an authorized representative:
(1) Those who have an interest due to buying, exchanging, gifting, leasing, or mortgaging a ship;
(2) Those who have an interest due to civil disputes involving the ship for which litigation or arbitration has been initiated;
(3) Other circumstances stipulated by laws and regulations.
Article 155 Entities and individuals meeting the following conditions may query the ship registration files at the ship registration authority handling the registration of the matter to be queried:
(1) The ship right holder may query the ship registration files directly related to their ship rights by themselves or through an authorized representative;
(2) People’s courts, people’s procuratorates, state security organs, discipline inspection and supervision organs, audit organs, and other relevant Party and state organs and arbitration institutions may, for work needs, query the ship registration files directly related to the cases or work matters they are handling;
(3) Law firms may, for the needs of representing in litigation cases that the court has accepted and registered, query the ship registration files directly related to the cases they are representing.
Article 10 Regarding the ownership of a ship under construction, if the parties have an agreement on its attribution, the agreement shall prevail; if there is no agreement or the agreement is unclear, it belongs to the shipbuilder.
Note: Newly added article. Fully embodies the principle of party autonomy, clarifying that if the parties have an agreement on the ownership of the ship under construction, such agreement shall prevail.
Section 2 Ship Mortgage
Article 11 A ship mortgage refers to the right of the mortgagee, with respect to the ship provided by the mortgagor as security for a debt, to enjoy priority in compensation from the ship according to law when the debtor fails to perform its maturity debt or when the circumstances for realizing the mortgage agreed upon by the parties occur.
Note: This article concerns the concept of a ship mortgage, with partial textual modifications.
Article 12 A ship mortgage may be created by the shipowner or a person authorized by the shipowner.
The creation of a ship mortgage shall be executed through a written contract.
Note: This article concerns the creation of a mortgage, changing “creation” to “establishment”.
Article 13 The creation, alteration, transfer, and extinction of a ship mortgage shall be registered with the ship registration authority; without registration, it may not be asserted against a third party acting in good faith.
The registration of a ship mortgage shall be handled jointly by the mortgagee and the mortgagor with the ship registration authority.
The registration of a ship mortgage includes the following main items:
(1) The name or title, and domicile of the mortgagee and the mortgagor;
(2) The name, nationality of the mortgaged ship, and the issuing authority and certificate number of the ship ownership certificate;
(3) The amount of the claim secured and the time limit for repayment;
(4) The date of mortgage registration.
The registration status of a ship mortgage is accessible for public inquiry.
Note: This article concerns mortgage registration, with partial textual modifications.
Added one paragraph as Paragraph 2, clarifying that the registration of a ship mortgage shall be handled jointly by the mortgagee and the mortgagor with the ship registration authority.
Regulatory Link: “Regulations on Ship Registration”
Article 20 When creating a mortgage on a ship of 20 gross tonnage or more, the mortgagee and the mortgagor shall apply to the ship registration authority of the port of registry for ship mortgage registration by submitting the following documents: (1) a written application signed by both parties; (2) the ship ownership registration certificate or the ship construction contract; (3) the ship mortgage contract.
If the ship has other mortgages created on it, relevant proof documents shall also be provided.
When a mortgage is created on a jointly owned ship by the co-owners, a certificate of consent from co-owners holding two-thirds or more of the shares or as agreed upon shall also be provided.
Article 14 A mortgage may be created on a ship under construction.
To register a mortgage on a ship under construction, relevant documents shall be submitted to the ship registration authority in accordance with relevant regulations.
Note: This article concerns mortgages on ships under construction, with partial textual modifications.
Article 15 Unless otherwise agreed in the contract, the mortgagor shall insure the mortgaged ship; if it is not insured, the mortgagee has the right to insure the ship, and the insurance premium shall be borne by the mortgagor.
Note: This article concerns insurance of the mortgaged ship. Changed “the mortgaged ship” to “mortgaged ship”.
Article 16 Unless otherwise agreed by the co-owners of the ship, when a mortgage is created on a jointly owned ship, it shall be handled according to the following circumstances:
(1) If the ship is owned in shares, the consent of co-owners holding two-thirds or more of the shares shall be obtained;
(2) If the ship is owned in common, the consent of all co-owners shall be obtained.
A mortgage created by the co-owners of a ship shall not be affected by the division of the co-ownership of the ship.
Note: This article concerns mortgages on jointly owned ships. The 92 Maritime Code stipulated that “When a co-owner creates a mortgage on a jointly owned ship, the consent of co-owners holding two-thirds or more of the shares shall be obtained, unless otherwise agreed among the co-owners.”
Article 17 After the creation of a ship mortgage, the mortgagor may transfer the mortgaged ship. If the parties have agreed otherwise, such agreement shall prevail. The transfer of the mortgaged ship does not affect the ship mortgage.
Note: This article concerns the transfer of a mortgaged ship. The 92 Maritime Code prohibited transfer.
Regulatory Link: “Regulations on Ship Registration Work” Article 79 If the ship ownership is transferred during the mortgage period without applying for cancellation of the mortgage registration, the current ship registration authority shall record the registered mortgage information of the ship in the ship register and the ship ownership registration certificate, note the name of the ship registration authority that handled the ship mortgage registration, and add a note on the change of ship ownership information on the original mortgage registration certificate.
Article 18 If the claim secured by a ship mortgage is transferred, the mortgage is transferred accordingly, unless otherwise provided by law or agreed by the parties.
Note: This article concerns the transfer of a mortgage. The 92 Maritime Code stipulated that “If the mortgagee transfers the claim secured by the mortgaged ship in whole or in part to another person, the mortgage is transferred accordingly.”
Regulatory Link: “Regulations on Ship Registration Work” Article 73 If a ship mortgage is transferred, the mortgagee and the transferee shall apply to the ship registration authority of the port of registry for mortgage transfer registration by submitting the ship mortgage transfer contract, the claim transfer contract, proof that the mortgagee has notified the mortgagor, the ship ownership registration certificate, and the original mortgage registration certificate. Upon review and if it conforms to the provisions, the ship registration authority shall seal the original ship mortgage registration certificate, issue a new ship mortgage registration certificate to the transferee, and record the transferee as the mortgagee in the ship register and the ship ownership registration certificate. The mortgage registration application date in the new ship mortgage registration certificate shall still be the mortgage registration application date of the original mortgage registration certificate, and the issuance date shall be the approval date of the mortgage transfer registration.
Article 19 Where two or more ship mortgages are created on the same ship, the order of repayment shall be determined according to the following circumstances:
(1) If the ship mortgages have been registered, they shall be satisfied in the order of the time of registration;
(2) A registered ship mortgage shall be satisfied prior to an unregistered one;
(3) If the ship mortgages are unregistered, they shall be satisfied in proportion to the amounts of the claims secured.
Note: This article concerns two or more mortgages, with textual modifications to align with Article 414 of the Civil Code. The 92 Maritime Code stipulated that “Two or more mortgages may be created on the same ship. The order of the mortgages shall be determined according to the order of registration.
Where two or more mortgages are created on the same ship, the mortgagees shall be satisfied in the order of registration of their mortgages out of the proceeds from the auction sale of the ship. Mortgages registered on the same day shall be satisfied in the same order.”
Article 20 If the mortgaged ship is damaged, lost, or expropriated, the mortgagee shall have the right to priority in compensation from the insurance money, compensation, or indemnity, etc., obtained.
Note: This article concerns the extinction of a mortgage, with partial textual modifications. The 92 Maritime Code stipulated that “The mortgage shall extinguish when the mortgaged ship is lost. The mortgagee shall be entitled to priority in compensation from the insurance coverage received for the loss of the ship over other creditors.”
